What would you do? RE: First rental property

Question

I currently have a SFH in Aurora, IL with tenants until June 08.  There are wanting to stay past June and are willing to sign until the end of Feb 09.  With that being the middle of winter in the Chicagoland area, would you do a lease until then or would you go month to month after June?  Obviously if I do the month to month I would want to ask more for rent.  Any views would be appreciated!

Account Closed · Answer

I seem to end up with too many winter vacancies, but I wouldn't deliberately set myself up to have one.

I'd tell them they could have an extra month, or they could sign another full year.

I'd much rather have a vacancy in summer. Be forewarned, they are going to be really difficult about showing the unit when they have a brand new baby, so don't let them stay until the end of summer. You are most likely going to have to wait until they are out to show, because they are going to make showing very unpleasant.

Josh Bryan · Answer

Since they are expecting in May, I told them that they can stay until the end of July.  I will begin looking for new tenants in May for a move in date of August 1.

Eric Reinard · Answer

I would avoid the turnover. If they're willing to extend their lease then I would do just that and worry about it in Feb.09. I agree with Mikey that the month to month thing is risky, they could decide to leave anytime after July, especially if they had to pay higher rent.
Since they're pregnant, the last thing they want to do is worry about where to live and I would guess that they would probably stay past Feb.09 as well so they can move in the Spring or Summer months. 
Additionally, if you do have a turnover in Feb.09 I wouldn't worry about it, we've turned over properties at all times during the year with no real headaches to speak of. I would focus on occupancy instead of weather.

Cyrus Uible · Answer

I would just ask them to sign for another year.  If they don't agree I would tell them that they would be free to find another tenant to take over the lease, but then it's on them to do and not you.

Mikey Kay · Answer

I work with my tenants:

1. I ask them 5 months before if they are looking to move or not.

2. If they dont want to move I make them resign asap and do not wait till the contract ends, I just void the old lease and make a new one

3. If they do want to move then let them know you will be showing the apt and give them notice every time you have an appointment set up. Most people understand that you cant afford to have an empty apt.

4. The month 2 Month is risky because even though you collect more rent you are still at risk of having a vacancy at any given time.

good luck!

Josh Bryan · Answer

maybe I can ask them to leave for an hour or so on the days that I am going to show the place.

Josh Bryan · Answer

The orginal lease runs until June 30,2008.  They got pregnant and are expecting in May, hence they don't want to move in June.  Maybe I should go month to month with a 45 day notice and raise the rent $100 a month.  I know the weather sucks up there right now and that is why I am concerned about leasing until Feb.

Timothy W. · Answer

What was your agreement when you signed the initial lease?  If there was none, just send them the lease assuming that's what they mean by staying longer.  It probably is what they mean anyway.  The weather up here right now sucks.  I wouldn't move.

Eric Foster · Answer

Whatever you need to do to lower the possibilities of a longer vacancy period…

Some ideas are to…
Ask them to leave earlier, stay longer, start marketing the house sooner etc.

It is nice to work with people to make it easier for them, but not at your expense!